In the coming weeks and months you will begin to receive communications about credit union membership and what you can expect during the Community First acquisition process. You may have questions now, such as:
We want to ensure you have a smooth transition, so we’re introducing credit union membership and what it means for you.
What is a Credit Union and How Is It Different from a Bank?
Unlike traditional banks, credit unions operate on a not-for-profit basis, focusing on the well-being of their members rather than maximizing profits for external shareholders. This cooperative model is rooted in a democratic governance structure, giving members equal voting rights and the ability to elect the board of directors. A credit union’s Board of Directors is comprised of volunteers who are not compensated for their role. This creates an environment of pride in member ownership, investing money back to membership, and a stronger role in the local community.
While banks typically boast larger networks, credit unions may have a more localized presence, fostering a personalized and community-focused approach. Importantly, the not-for-profit nature of credit unions translates into a member-centric redistribution of profits, with earnings either reinvested in the institution or returned to members in the form of lower fees and better interest rates.
This unique blend of community focus, democratic structure, and financial perks sets credit unions apart from traditional banks.
How Does Credit Union Membership Work?
When you join a credit union, you become a member-owner of a not-for-profit financial cooperative. Eligibility is based on factors such as where you live, work, worship, attend school, or other qualifying affiliations. To establish membership, you'll open a primary savings account and maintain the required minimum deposit. That deposit represents your membership share in the credit union.
Benefits of Credit Union Membership
As a member, you have access to a full range of financial products, from checking and savings options to loans, credit cards, and more.
Credit unions are member-owned, which means profits are shared with members, not shareholders, through access to competitive interest rates on loans, and low fees on checking and deposit products.
Membership also comes with perks and benefits such as: